If Interest Rate Parity Exists,and Transaction Costs Do Not Exist,the

question 9

Multiple Choice

If interest rate parity exists,and transaction costs do not exist,the _________ hedge will yield the same result as the _________ hedge.

• A) money market;futures
• B) money market;options
• C) money market;forward
• D) forward;options

---

Definitions:

Witty Headlines

Catchy and clever titles designed to grab attention and entice readership.

Audience-focus Message

A message tailored to the interests, needs, or expectations of the intended audience, ensuring greater engagement and effectiveness.

Teasers

Teasers are brief advertisements or announcements designed to intrigue or stimulate interest in a product, event, or piece of content without providing full details.

Orientations

The introduction or adjustment of individuals to new environments, positions, or concepts.